Posted on 04/14/2021 6:45:42 PM PDT by E. Pluribus Unum
WASHINGTON—Federal Reserve Chair Jerome Powell on April 14 pushed back on warnings about a rising federal budget deficit and national debt due to an aggressive fiscal response to the pandemic and said the “current level of the debt is very sustainable.”
“There’s no question of our ability to service and issue that debt for the foreseeable future,” he said during a virtual interview hosted by the Economic Club of Washington, D.C.
He warned, however, that the national debt is growing “meaningfully faster” than the U.S. economy.
“That’s by definition, unsustainable over time. It’s a different thing to say that the current level of the debt is unsustainable. It’s not,” he said.
Federal debt held by the public reached 100 percent of gross domestic (GDP) product in the last fiscal year. And President Joe Biden’s $1.9 trillion coronavirus relief package signed into law last month increased the deficit and the national debt even further. The gross federal debt is on track to reach $30 trillion.
The Congressional Budget Office now projects the federal debt will be 107 percent of GDP by 2031, the highest level in U.S. history.
When the economy is strong, Powell said, the United States could focus on addressing the debt problem.
“We will have to eventually get back to a sustainable path. That is something that is best done in very good times when the economy is at full employment and when taxes are rolling in. This is not the time to prioritize that concern,” he said.
Economists, including Lawrence H. Summers, the former Treasury secretary under President Bill Clinton, have raised concerns about Biden’s aid package and warned that excessive government spending could overheat the economy and fuel inflation.
(Excerpt) Read more at theepochtimes.com ...
Delusional he is.
He says the economy is strong..Yeah,Calif,Michigan and New York are just humming along
What’s he smoking?
All the Democrats are disciples of Stephanie Kelton now - allows them to print money and pretend there is no problem.
Write yourself an infinite term no interest loan and the debt is sustainable, I suppose. It’s also inflationary as hell. Well it isn’t if you get to jigger the books on price averages. Hey you can horizontally substitute $3/lb potato chips for $25/lb beef stake. Prices are falling.
Bought and paid for, he is.
Yet another of Biden’s ministers of disinformation.
The man is a complete imbecile if he believes that.
>>The Congressional Budget Office now projects the federal debt will be 107 percent of GDP by 2031, the highest level in U.S. history.<<
That’s strange. The U.S. Federal debt to GDP ratio is currently at 130% according the the U.S. Debt clock real time.
I told my friend to get ready for a $25.00 hamburger from McDonald’s. She scoffed. And that is why I am stacking.
“....Fed’s Powell Says Current US Debt Level Is ‘Very Sustainable’....”
In democratese, that means that it isn’t.
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
Well, duh. If your interest rate is effectively zero (ZIRP), then infinite debt is “sustainable”.
If your interest rate is negative (NIRP), then you make $$ off your debt. People pay you to preserve their wealth.
NIRP is where we are eventually headed.
Powell has changed his public stripes from “moderate” Republican to Woke Terrorist even faster than Johnny Roberts.
However in Powell’s case I understand he can’t wait to get out (term up early next year) so probably just wants to preserve his house and possessions from Antifa and then CCP Joe can install an actual Financial Terrorist as the Fed Chair.
Blatant liar.
They will wish they could get a mcdonalds hamburger for only $25 in the near future.
“...because we can always print money to do that.” As someone famously once said.
That has been nagging at me ever since I took a hard look at electronic currencies.
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